Microsoft has released a new utility called the Windows USB/DVD Download Tool to create a bootable USB. When you purchase Windows 7 from Microsoft Store, you have the option to download an ISO file or compressed files.
Windows USB/DVD Download Tool
The Windows USB/DVD Download tool allows you to create a copy of your Windows 7 ISO file on a USB flash drive or a DVD. To create a bootable USB or DVD, download the ISO file and then run the Windows 7 USB/DVD Download tool. Once this is done, you can install Windows 7 directly from the USB flash drive or DVD.
Create Bootable Media
The ISO file contains all the Windows 7 installation files combined into a single uncompressed file. When you download the ISO file, you need to copy it to some medium in order to install Windows 7. This tool allows you to create a copy of the ISO file to a USB flash drive or a DVD. To install Windows 7 from your USB flash drive or DVD, all you need to do is insert the USB flash drive into your USB port or insert your DVD into your DVD drive and run Setup.exe from the root folder on the drive.
Using the Windows USB/DVD Download Tool:
Before you run the Windows 7 USB/DVD Download tool, make sure that you have already purchased Windows 7 ISO download from Microsoft Store and have downloaded the Windows 7 ISO file to your hard drive. If you have purchased Windows 7 but have not yet downloaded the ISO file, you can download the file from your Microsoft Store Account.
To make a copy of your Windows 7 ISO file:
– Click the Windows Start button, and click the Windows 7 USB/DVD Download tool in the All Programs list to open the Windows 7 USB/DVD Download tool.
– In the Source File box, type the name and path of your Windows 7 ISO file, or click Browse and select the file in the Open dialog box.
– Select USB to create a copy on a USB flash drive or DVD to create a copy on a DVD disk, then click Next.
– If you are copying the file to a USB flash drive, select your USB device in the dropdown list and click Begin copying. If you are copying the file up to a DVD, click Begin burning.
When your Windows 7 ISO file is copied onto your chosen media, you can install Windows 7 by navigating to the root of your DVD or USB flash drive and double-clicking Setup.exe.
Download Windows USB/DVD Download Tool from Microsoft.
You can also read the detailed tutorial on how to install Windows 7 from USB.
Also check this utility to create a bootable USB.